Irish house prices not overvalued despite strong rises - central bank

DUBLIN (Reuters) - Houses prices in Ireland are not currently overvalued despite quite strong rises in the market, the head of financial stability at the Irish central bank said on Wednesday.

House prices climbed 10.5 percent in the year to the end of April, their highest annual growth rate in almost two years, amid a severe shortage of supply. They remain 31 percent below the peak hit a decade ago at the height of the property bubble.

"One method we look at is the level of houses prices compared to where we think they should be at this stage. The work we have published that we will be updating suggests that house prices are not currently overvalued, albeit that price rises are quite strong," Mark Cassidy told a news conference.